Yes, there are ways to purchase or buy a home after a bankruptcy as well as buy a home after foreclosure but, you have to plan ahead to make the task a lot easier and home ownership a reality. With the mortgage industry in an ever changing state due to the past housing problems and lenders requiring more rigid standards, knowing what to and what not to do is essential. Buying a Home After Bankruptcy You should first know what the normal waiting period is before approaching lenders with your application for a home loan. Under normal circumstances you will have to wait a minimum of 2 years after bankruptcy (chapter 7 bankruptcies) and 3 years for closures. If you had a Chapter 13 bankruptcy and need to refinance a home you might be able to get a loan after 1 year of on time payments and with permission from a court appointed official. Be sure to check your credit report to see that it is accurate. Often when bankruptcy and foreclosure information is added to a credit report there are errors. You can get a copy of your report with a score online, just do a price comparison and ensure you are getting the three major bureaus. If you’d like help understanding the report take it to your bank and get someone there who understands credit reports to go over it with you. Often they can offer up invaluable information describing the particulars on the report and provide solutions to get you on the path of restitution. What Lenders Want to See Following a Bankruptcy or Foreclosure? Buy a Home After Foreclosure What most of the lenders are looking at when you have had a prior bankruptcy and or foreclosure is to evaluate if you’ve had any negative actions on your credit report after the event to determine if you have truly gotten back on course in the managing of debt and they also want to see a few items reporting on the credit report since the bankruptcy showing paid as agreed for a minimum period of time. I’ve found that many financial institutions are looking for at least 12 months of paid as agreed activity on 2-3 accounts, also referred to as trade lines from the discharge date of the bankruptcy before considering granting a refinance. Steps You Can Take If Your Credit Isn’t Worthy Enough For Refinancing If your report display additional negative occurrences other than medical (since many lenders will overlook medical) you might want to think about using a reputable credit repair company to get the unfavorable items removed before you apply for the refinance. Your search for a reliable company should not be taken lightly and you should select one that has a good track record and can exhibit proof of their success rate with past customers. It is easy to get drawn in by the wrong company so do your homework ahead of time. What Credit Score Should You Have To Get A Refinance With Damaged Credit? As the market is ever in flux I’ve found a few lenders now willing to do refinances on damaged or dinged credit with scores as low as 530. These, generally are FHA loans for primary residences only. Credit scores of less than 580 require a larger down payment for purchases and refinances are limited to a lower loan to value. Usually lenders expect the borrower to have a few months reserve payments put aside (mortgage payments must include taxes and insurance). This will help to make certain that the mortgage companies do not make getting out of your fix any worse than it needs to be.